Per Diem Employee Rights: Are You Entitled?

Per diem is not a universal right in the private sector. Whether you receive it — and how much — depends on your employment contract, union agreement, or company policy. Here's how it breaks down.

Private-sector employees

Federal law (the Fair Labor Standards Act) does not require private employers to pay per diem or travel expense reimbursements, as long as any expenses that would bring pay below minimum wage are reimbursed. However, if your employment contract, offer letter or company policy promises per diem, you are entitled to it under that agreement.

Government employees and contractors

Federal employees who travel on official business are entitled to per diem at GSA rates under the Federal Travel Regulation. State and local government employees are typically covered by equivalent state travel regulations. Federal contractors are governed by the Federal Acquisition Regulation, which limits allowable travel to the GSA rate.

Union-covered workers

Many collective bargaining agreements specify per diem amounts, usually at or above the GSA rate. If you are covered by a union contract, check the travel and reimbursement provisions — per diem is often guaranteed and the rate may be higher than your employer's standard policy.

When it can be withheld

• You didn't submit an expense report or documentation of the trip.
• The trip wasn't pre-approved as required by company policy.
• You stayed with family instead of a hotel and the policy requires an actual lodging expense.
• You cancelled or shortened a trip and per diem was already paid as an advance.

What to do if your per diem is denied

Start with your company's expense policy and HR department. If the denial contradicts a written policy or contract, raise it in writing. For government employees and contractors, disputes may be addressed through the contracting officer or your agency's travel office.